The Russian birch plywood producer Sveza said that it expected a reduction in production in 2020: from 20% to a complete stop, depending on the evolution of the pandemic.
According to the Anatoly Frishman, managing director of Sveza, the company conducted stress tests for different scenarios in a pandemic.
For each of these scenarios, Svez developed measures to reduce costs, redistribute production volumes and protect production.
Anatoly Frishman emphasized: “In principle, there have already been situations in the history of Sveza when production stopped for a short time due to a lack of raw materials or orders. In the worst-case scenarios, shutdowns [of production] are envisaged. ”
In addition, the general director of the company noted that the owner of Sveza, Russian billionaire Alexey Mordashov “always takes a very careful attitude to business”: “Of course, we also discussed plan B, which includes completely negative scenarios and about the options for the development such events, we’ve identified the points where his participation is necessary. ”
The group is one of the leading players in the woodworking market. It produces high-quality plywood of natural Russian birch and hold a global leadership in this area. It is reported to be the world’s largest producers of natural Russian birch plywood.
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